The Life Cycle of Your Crypto Fund: A Six Month Example

by 24K Staff

A good investor sets aside a budget for inventory that they are planning to purchase, and our six-month cryptocurrency cycle can be thought of as crypto funds. You budget: where money is going during the purchase, what you are going to buy, and what that will cost you.

For most beginners, the easiest stance to take is to take an “owl” approach. Keep the amount of money allocated to cryptocurrencies low, and compatible with the amount you are willing to risk on that money.

Then it is about making sure your portfolio is in balance. You want to find where your most valuable assets and spend more time.

Six Months:
Stage One:
You might allocate 10-15 percent of your budget per crypto family
Stage Two:
Spread your money evenly by buying at least one coin from every crypto family
Stage Three:
At this point, you want to find balance in your portfolio and find where your profits and losses are the lowest
Stage Four:
At this stage, you start profiting. You want to maintain balance by making sure you’re still diversifying, considering where to devote your time, and seeing what crypto families you are profiting off more and less of.

The difference in approaches can be seen by how much money you invest at the start, and also at this phases, and which coins you want to buy. Generally, token percentage allotments will come down with time, and portfolio concentration will climb.

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